Credit card market in India to double, reach 200 million by 2028-29: Pwc

According to a PwC report, the number of credit cards in India is set to reach 200 million, growing at a compound annual growth rate (CAGR) of 15%. The credit card industry has significantly expanded, doubling the number of cards issued over the past 5 years, and this trend is expected to continue. By FY29, the market is projected to double its cards in force to 200 million, replicating past growth patterns. Credit card transaction volumes have increased by 22%, and transaction values have surged by 28%, driven by new products, innovative offerings, and broader customer segments.

In contrast, debit card usage has declined, with transaction volumes dropping by 33% and transaction values decreasing by 18% in FY24 compared to the previous year. This decline is attributed to the growing adoption of the Unified Payments Interface (UPI), which offers ease of use and zero Merchant Discount Rate (MDR). Debit cards have also struggled against credit cards regarding rewards, further diminishing their appeal. Digital payments, however, are thriving, with transactional volume growing by 42% YoY in FY24 and expected to triple by FY29, driven by innovations, new business models, technological advancements, and increasing customer awareness.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.